Many experts are predicting that shippers in the US will be facing tough truck capacity conditions for much of 2014. Being cautious due to the uncertain economy of recent years, many carriers have been wary of adding capacity in their fleets. Moreover, experts believe that if and when the US achieves sustained growth in the GDP of 2.5% or higher, freight shippers would have a hard time finding carriers who meet the demand in capacity.
US GDP growth was 4.1% on an annual basis in Q3, and 3.2% in Q4 – based on that growth it seems like that time is now. In other words, it’ll become increasingly difficult to find available trucks to haul your freight shipments.
When trucks are limited, railways provide excellent options
When trucks are not readily available, or, because of capacity demand, carrier rates are sky high, the railways might be at full disposal and at a fraction of the cost.
While rail capacity is expanding, many trucking companies are being forced out of business due to the economy and new regulations they just can’t meet. Railways are also immune to certain economic and seasonal patterns which tighten the already strained truck capacity.
Rail shipments also keep moving through nasty weather, while a frozen highway might bring your truckload freight to a halt. This makes intermodal shipping a great substitution for truckload shipping, even if only utilized at certain times of year.
Shipping by rail is cheaper than over the road
Rail shipping is always less expensive than truckload shipping – most of the times. Of course, there are exceptions, but generally, rates will be lower. The primary reason for this is the huge difference in fuel consumption – since trains can move freight using thousands of tons less fuel, those huge savings are passed on to you, creating a distinct cost advantage with rail shipments.
Freight-Specialist knows the ins and outs of the industry. We’ll advice you in the best ways to send your shipments, not just to save you money, but that the shipment gets there on time, every time. To find out how we can help you start by filling our “Online Freight Quote“